SENSIO Technologies Inc.

SENSIO Technologies Inc.

January 29, 2010 08:00 ET

SENSIO Releases its Financial Results for the Second Quarter of Fiscal 2009-2010

MONTREAL, QUEBEC--(Marketwire - Jan. 29, 2010) - SENSIO Technologies Inc. ("SENSIO" or the "Company") (TSX VENTURE:SIO) presents the financial results for its second quarter ended November 30, 2009. As in previous quarters, revenue was primarily generated by the rollout of the SENSIO®3D Movie technology, which is used to broadcast live events in 3D in digital movie theatres. Two new events were broadcast in the U.S. (ESPN) and Mexico (Televisa), marking another step toward the viewing of 3D events in the home. The quarter was also marked by the introduction and demonstration at the IBC of a 3D digital terminal developed in collaboration with Sagemcom, confirming SENSIO's lead in the field of 3D broadcasting. "For two years now, we have been building this unique infrastructure with a view to the broadcasting of major international events in 3D and the arrival of 3D home viewing. With the work done in the latest quarters, we are in an ideal position to take advantage of the many recent 3D broadcasting announcements," explained Nicholas Routhier, Chairman and CEO of SENSIO.

2nd Quarter Highlights

- A 52.1% increase in SENSIO's revenues in the first six months of the fiscal year.

- Distribution of SENSIO technology in digital movie theatres, bringing the total number of movie theatres worldwide to 241.

- Broadcasting of two new live events in 3D, for a total of 15 events in 2009.

- Introduction at the IBC of a 3D digital terminal developed in collaboration with Sagemcom, making it possible for consumers to view 3D content at home.

- Announcement of a $10M bought deal private placement, which closed post-quarter.

From the theatre to the home: new SENSIO®3D content

By facilitating the showing of live 3D events through its digital movie theatre network, SENSIO obtains content encoded in its format that could eventually be distributed in movie theatres and homes simultaneously through video-on-demand and Pay-TV. The ESPN event conclusively proved the concept by broadcasting to movie theatres and various 3D televisions alike. Live 3D events are integral to SENSIO's strategy for the consumer electronics market, as they supplement its entertainment library (DVDs and video games) already available on the market. All the live 3D events broadcast commercially in 2009 were in SENSIO®3D format, thus confirming its leading position in the marketplace.

Introduction at the IBC

During the quarter, SENSIO collaborated with Sagemcom, a digital terminal manufacturer, on the integration of SENSIO®3D technology in one of their devices. With the new 3D terminal introduced at the IBC (International Broadcasting Convention) in Amsterdam last September, consumers will be able to order 3D HD content at home through video-on-demand and Pay-TV.

At the IBC, SENSIO also introduced a new function which is available using SENSIO®3D technology: live broadcasting of 2D content in 1080p60. In addition to 3D broadcasting, SENSIO®3D can also be used to broadcast 2D content in 1080p on the current distribution infrastructure, which is now limited to 1080i, without adding another bandwidth. By introducing this new functionality, the Company demonstrated that its technology brings added value to the live transmission of 3D and 2D content, not only in theatres but also at home.

SENSIO also took advantage of its presence at the IBC to meet a number of European broadcasters and service providers. In the European market, 3D is currently in full swing, as appears from the recent announcements by BSkyB, Canal + and Orange, to name but a few.

A Private Placement of Over $10 million

During the quarter, SENSIO announced a $10,016,500 bought deal private placement. The placement, which closed on December 14, 2009, was underwritten by institutional investors. SENSIO plans to use the net proceeds from the placement to boost its sales and marketing activities, continue its research and development, and protect and enforce its intellectual property rights. The remainder will be used as working capital and for general corporate purposes.

Summary of Financial Results

During the second quarter of the 2009-2010 fiscal year, SENSIO generated revenues of $184,247 compared to $127,901 in the quarter ended November 30, 2008, an increase of 44.1% Most of the revenues generated by the Company in the second quarter came from the sale of licences and cards destined for the digital movie theatre market. SENSIO's gross profit for the quarter was 73% compared to 89.5% in the previous period. This decrease is explainable by the fact that SENSIO sold a different solution in the European market. To meet growing demand, the Company sold both a hardware and a software solution, which reduced its gross profit.

Cost of sales rose from $310,446 in the second quarter of fiscal 2009 to $340,834 for the comparative quarter in fiscal 2010. This increase can be chiefly explained by the addition of staff to support marketing efforts and the hiring of outside consultants specializing in business development.

During the quarter, R&D expenses rose by 23.8%, from $94,103 to $116,524. The variance is primarily due to departmental salary increases and a reduction in the expenses eligible for the R&D tax credit.

Administrative expenses stood at $315,938 in the second quarter ended November 30, 2009 compared to $276,889 in the comparative quarter the previous year, an increase of 14.1%. The increase can be explained by the hiring of administrative staff and an increase in professional fees to support the Company's business development.

Main financial information

Quarter ended Semester ended
November 30 November 30
Unaudited Unaudited
2009 2008 2009 2008

Sales 184,247 127,901 394,408 259,376
Gross profit 134,471 114,462 254,251 233,125
Net loss 645,194 611,811 1,098,656 971,360
Net loss per common share 0.0140 0.0180 0.0250 0.0286


SENSIO Technologies Inc. (TSX VENTURE:SIO) - With its significant expertise in the field of 3D video, SENSIO develops and markets digital stereoscopic compression, decompression and formatting technologies for various display screens. Its solutions are in large-scale use by content creators, video-game developers, broadcasters, specialty channels and digital movie theatres, thus generating substantial additional distribution income for its clients. Its flagship technology, SENSIO®3D, enables high-quality distribution of 3D content on conventional 2D channels (cable, satellite and/or IPTV), and playback on any 3D display device, including plasma TVs, high-definition LCD TVs, PCs, and glasses-free 3D displays or projectors for digital movie theatres and home theatres. SENSIO®3D is a true multi-platform format and is compatible with the existing DVD and Blu-ray players as well as game consoles, including the Xbox® and Playstation®3. It is the format of choice for creating recognized 3D gaming experiences. SENSIO is listed on the TSX Venture Exchange. For further information visit We.Deliver.3D.Today.™

SENSIO ® is a trademark of SENSIO Technologies Inc.

Xbox ® is a trademark of Microsoft Corporation.

Playstation® 3 is a trademark of SONY Corporation.

We.Deliver.3D.Today. is a trademark of SENSIO Technologies Inc.

This news release contains forward-looking statements that reflect the Company's expectations with regard to future events. Actual events could differ significantly from those anticipated in this document.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.

Contact Information